Department endorses music school builder

DOUBTS about the financial stability of the British company chosen to design, build and run the proposed €60 million Cork School of Music have been cast aside by the Department of Education and Science.

Yesterday, the Cabinet met to discuss the recently reported financial crisis facing Jarvis Construction, the British company which was chosen to bring the plan to fruition. After the meeting the Government decided to proceed with the finalisation of the contracts for the long awaited project.

“A small number of issues remain to be finalised,” said a spokesperson for the Department of Education and Science. “The normal PPP contract execution process will require the financial institution backing Jarvis on the project to be a signatory to the actual contract.”

Jarvis Construction, is in talks with banks to reorganise its £230 million debt. The company’s share price has fallen to 10% of its value a year ago. The Department of Education and Science was in the final stages of completing the contracts when news of Jarvis’ financial woes became known.

Jarvis will be responsible for the design, building, maintenance and operation of the new school.

The building will cost the State €8.2 million a year over 25 years.

The Labour Party spokeswoman on Education and Science, Deputy Jan O’Sullivan, has called on Education Minister Noel Dempsey to allay any remaining fears about Jarvis. “It has already been significantly delayed because of concerns that Ireland would break EU spending rules if it went ahead with this particular public-private partnership model. Staff and students have had to endure appalling conditions in the meantime.

“Minister Dempsey must also reassure the five schools already built by Jarvis that their equipment and ongoing maintenance is secure. As the financial commitment to the project is long-term it is essential the company chosen to do the work is secure in the long-term,” she said.

Jarvis has been behind the building of five post-primary schools in the State: in Ballincollig and Dunmanway in Co Cork, Tubbercurry, Co Sligo, Clones, Co Monaghan, and Shannon, Co Clare.

The school was to be built by the start of 2005 as part of Cork’s City of Culture, but work is not likely to start before next June.